Role of Real Estate Sector in Economy of Bangladesh
Subject: Architecture | Topics:


The real estate and housing sector is one of the main drivers of any national economic development and industrialisation. In Bangladesh the real estate has emerged as a critical sector of our economy. It has a huge multiplier effect on the economic activities and therefore, is a big driver of economic growth. It is one of the largest employment-generating sectors after agriculture. This sector has been contributing about 12-15 per cent to Bangladesh’s gross domestic product (GDP). Not only does it generate directly and indirectly 2.5 million employment opportunities, but it also arouses the demand for over 250 ancilliary industries e.g. steel, cement, tiles and sanitary ware, cable and electric ware, paint, glass and aluminum, brick, building materials, consumer durables and so on. In addition, the real estate and housing sector is contributing 12 per cent to 15 per cent to the national GDP and the annual turnover about Bangladesh Taka (BDT) 20 billion.

We all know that housing is one of the very basic rights for every citizen in the country, after food and clothing. To meet this fundamental requirement, the private real estate and housing developers of Bangladesh strategically initiated real estate development venture, a couple of decades back, to solve rapidly the growing urban housing problem along with the government. Consequent to the government’s policy of supporting private sector initiative in this thriving sector, there had been an impressive boom in investment and developmental activities. The sector witnessed the entry of many new domestic realty players.

With the passing of the  Toma GROUP expanded its business activities and undertook various project in different fields . Toma Properties Ltd. has been one of the leading Real Estate Development Companies of the country. To its credit, it has completed and undertaken a number of Commercial and Residential projects including Satellite Townships. The company maintains a team of highly qualified and experienced personnel diligently working together to maintain ‘Decent Living for the Teeming Millions’. With the Corporate Theme “Leadership with Excellence”.

Origin of the Report:

Since practical orientation is an integral part of the BBA degree requirement, I was deputed by the  Department of Bachelor of Business Administrationfrom State University of Bangladesh to  Limited to take real life exposure of the activities of the organization as a Toma Properties Ltd. This report has been originated  the course requirement of the BBA program. I hope the report will give a clear idea about the present real estate market.

Objectives of the Report:

Generally every study is conducted to find one or mere findings, if the findings are predetermined they called the objectives of the study. The main purpose of my study is to evaluate the Land & Flat Pricing in Bangladesh. Thus the main objectives of the study are as follows.

  • To show overall Sceneries of Real Estate Market and Opportunities in Bangladesh.
  • To analyze the Present Real Estate Market Scenario.
  • To define the Pros & Cons of Real Estate in Bangladesh.
  • To determine the Pricing Strategy.
  • To identify Problems faced by the customers as well as the marketers .
  • To Identify the Reason behind the Real Estate Boom.
  • To analyze the Present  Real Estate of Bangladesh & South Asian Countries.
  • To analyze the present flat sales decrease.
  • To put forward some recommendation in the light of the problems identified.

Methodology of the study:

The Report has been made on the basis of the objectives mentioned Role Real State  in  Economy of Bangladesh ( A Study On Toma Properties Ltd) .The paper  will  be  written  on  the  basis  of  information  collected  from  primary  and secondary sources.

Primary Sources : Discussion with the respective organization’s officials.  For the completion of the present study.

The main sources of secondary sources are:

  • Website of Toma Properties Ltd.
  • www.

 Scope of the Report:

The duration of the study was Three months. This is an individual study, which is worked for this particular study under my internship program supervisor. Since this is a formal study, the scope of the study was not so detail. I just tried to give an overall scenario of the Real Estate Market and Opportunities as well as an actual market image in Bangladesh. The study covers overall Real Estate scenario of Bangladesh & South Asian countries and all the data are collected from the Internet & Website of Toma Properties Ltd, www. and from other paper which are mainly secondary sources.

Limitations of the Study:

  1.          I.            Time constraints: Limitation of time was one of the most important factors that imposed restriction on conducting the study extensively. Due to the time limitation many aspects could not be investigated in the present study.
  2.       II.            The dearth of Secondary data: In Bangladesh there is an acute dearth of secondary data in every sector. The Real estate sector is not exception to this. The amount of secondary date needed to thoroughly investigate the study was scarce. Thus, it depreciated the authenticity of the findings of this study.
  3.    III.            Privacy: It was not possible for me to collect some information that companies considered to be confidential of them, sales figures, profit margins, current assets, net income were important ones.
  4.    IV.            Lack of Experience: As an apprentice, it was not possible for me to apply sophisticated statistical tools and techniques to analyses date. Had these techniques been applied, more detailed and authentic finding could have been derived.

 Overview of real estate Sector in Bangladesh

Real Estate Business in Bangladesh: At a Glance

DhakaCity, born during the Mughal Empire and grown with the British rule, is expanding rapidly. From the beginning of the 20th Century its growth and latter development is marked with sheer lack of proper and far-reaching planning. The impact is now being felt at the beginning of the new century. DhakaCity is undergoing terrific growth phase throughout the last two decades.

Urbanization is an outcome of both population growth and rural-urban migration. As urbanization increases, more and more people are becoming city dwellers. Bangladesh is not any exception to this picture. In Bangladesh, the problem of urbanization is further aggravated by limited land supply in urban areas, lower land utilization and lack of proper planning and land use policy. As globalization increases, the process of urbanization increases. The ever increasing urban population is creating an increasing demand for shelter. The UN declaration and the constitution of Bangladesh recognize the right of shelter (REHAB, 2003). But being a government of the poor developing country, it is almost impossible on the part the government to ensure housing for all.

As public sector failed to ensure their right, people have taken their own initiative to ensure their fundamental need for shelter. This paper is an attempt to observe how private developer and real estate companies are influencing the urbanization pattern with special reference to Khulna and to provide some guideline for sustainable development of this sector.

  The current trend of urban growth in Bangladesh is about 5-6% per annum. At present 28% of Bangladesh’s population live in urban areas, which will be 34% by the year 2025 (REHAB, 2003). The present estimated population of Khulna is 1.2 million and estimated growth rate is 3.8% per annum (USAID, 1999). The Real estate developers are playing the vital role regardless of high, middle, and low-income people since the past two decades in providing the housing provision. Considering this situation, this paper is to identify the role of Small Scale Private Real Estate Entrepreneurs (SSREE) in providing the housing facilities for the growing urban population and how these SSREE are influencing the growth pattern of the city.

  In our country large scale Real Estate Business in private sector started gaining momentum from the beginning of 80s. It was initially started by some good entrepreneurs but gradually profit margin allured in a group of unscrupulous and notorious people.

 The initial concept of real estate finance in Bangladesh evoked probably in the hand of Eastern Housing Limited by undertaking their first land development project for housing in Mirpur area of Dhaka city known as “Pallabi” Project”. It was around 1950’s. During 1970’s apartment development got gross acclamation by the middle class city dwellers and by the late 1980’s it was an established ordinary deal among all levels of income group. And at present, the concept of real estate is getting expanded not only around developing apartments but also model cities, shopping malls, major infrastructure, commercial set-up with elaborate view of high profit margin.

Real Estate business took off in Bangladesh in 1970 with only five registered firms. From the early 1980s the business started to flourish and showed robust growth. By 1988, there were 42 developers in business. At present, more than 1500 companies are active in the real estate sector with 1081 of them registered with REHAB (Seraj, 2012). In the last four decades private developers have supplied more than 100000 units of apartments to the nation and will be supplying 25000 more units in the next three years .

Preamble: Urbanization is an outcome of both population growth and rural-urban migration. As urbanization increases, more and more people are becoming city dwellers. Bangladesh is not any exception to that picture. The ever-increasing urban population is catering an increasing demand for shelter. The right of shelter is a fundamental right, which is ensured by both UN declaration and the constitution of Bangladesh. But it is very difficult on the part of the government of Bangladesh alone to ensure housing for all. Here comes the need of private sector real estate development.

                   It is a recognized fact that the health of the Real Estate Development Sector is the barometer of the National economy. In Bangladesh Real Estate Business started in Dhaka in late seventies. During 1970s there were fewer than 5 companies engaged in this business. In 1988 there were 42 such developers working in Dhaka and now in 2013 there are about 800 companies engaged in this business.











Table: 2.1 Real estate Company growths.

Service Provided by Rehab for the Members

  •       Ensure quality of the construction.
  •       Market promotion activities by arranging fairs.
  •       Create authenticity in the mind of customer.
  •       Create policy for this industry.
  •       Negotiate with the government and other associations on behalf of the members
  •       Handle mutual dispute among the members.

The main reasons why real estate business developed in Dhaka city are as follows:

a) Scarcity of open space in the important areas of the city.
b) Hazards of purchasing land
c) Hazards of construction of building.
d) Rapid increase in population of Dhaka.
e) Decrease in the rate of bank interest.
f) Price of land and apartments is increasing day by day.
h) Open Market Economy. Remittance of foreign currency is very easy.
i) Security.
j) Service facilities such as garbage disposal, central satellite TV connection,

Overview of Toma Properties Ltd.

Toma Properties is an innovative property developer with a fresh approach to development, focusing on creating eco-friendly and architecturally unique property havens for living. Every project we undertake is based on the ethic that we have an principal responsibility to preserve the heritage and social values of the communities as well as the beauty of the locality.

A flagship company of “Toma Group” it has Toma Construction & Co. Ltd. who are well known for quality construction, loyalty and commitment. At Toma, we are committed to blend innovative architecture with an unflinching commitment to preserve and add to the natural habitat in Dhaka and all our destinations.

Toma Properties has always maintained an extremely high degree of integrity and a reputation for professionalism & honesty. Our public image and reputation are paramount, and this is reflected by the staff who are expected to present a professional attitude at all times in their dealings with the public, their clients and their team-mates. While our goal is always to provide exceptional service, our philosophy is based on customer care with a focus on building relationships with everyone who deals with us.

Toma Properties Ltd

Year of Inception                       :1996-97
Company Type:Private Limited Company
Current Position in the Industry:Market Challenger
Name of the Chairman:Mr. Mohd. Ataur Rahman Bhuiyan
Number of Directors:02
Financial Year:July to June
Number of Total Employees:1000 App.
Membership of Stock Exchange:No
Corforate office ::TomaTower ( 4th floor And 6th floor ),77/1                              karail , ramna, Dhaka -1000.
Contact: :Phone: +88 02 833366,8333183
Web Address: :www.tomagroupbd .com

Table: 3.1 Company Profile.

Vision of TPL

  • To maintain the highest standards in developing commercial properties.
  • To maintain the highest standards in developing homes for individuals.
  • To create safe homes.
  • To provide a fine blend of the traditional and contemporary design.
  • To provide feeling of living in a home with ultimate comfort.
  • To provide professional and personalized services of the highest integrity.

 Mission of TPL

  • Maintain outstanding service to its clients.
  • Maintain a high standard of quality of finish.
  • Maintain a safe environment.
  • Maintain value for many.
  • Continue good communications procedures.
  • Continue to promote a sense of corporate identity within all the staff team.
  • Continue to provide staff training to providing Excellence Customer Care.
  • Continue develop ‘Brand Name’.

 Goal of TPL

Dhaka is a densely populated city but with inadequate housing facility and quality of life, especially for the middle & lower middle class people. Tropical Homes Ltd. is committed to improve the quality of life of these people by offering good quality, low cost apartment affordable to all of customers.

 Objectives of TPL

Our objective is to create vest employ, make urbanization with modern facilities which will ensure safe environment and where quality will not be compromised. Innovation, dynamism and perfection lead us to ultimate satisfaction of our customers and that is our objective.

With the passing of the Toma GROUP expanded its business activities and undertook various projects in different fields. At present the group owns following companies:

 Toma properties

Toma flyover


Factory & plants

Roads and highway

Toma Properties Ltd. has been one of the leading Real Estate Development Companies of the country. To its credit, it has completed and undertaken a number of Commercial and Residential projects including Satellite Townships. The company maintains a team of highly qualified and experienced personnel diligently working together to maintain ‘Decent Living for the Teeming Millions’.

Upcoming Project: 7

Ongoing Project: 11

Completed Project: 4

Project nameAddressLand area KhataHeightToma Available FloorToma Available UnitsSize (sft)Final Minimum RateTarget Hand over
Presidency parkDhanmondi211346751850015-Dec
Samad villaSipaheebag13.8391410440016-Dec
Rahman manjilShahajanpur6.7591150520015-Dec
Khan heritageMalibag1291320440013-oct
Dada tower (residential)Misssion road16.7151373650016-Dec
Sun flowerUttra361640580015-jun

Table: 3.1.1 Some ongoing projects.

  • RCC Beam and Column frame are structured according to the American concrete Institute (ACI) and Bangladesh National Building Code(BNBC)
  • All apartment are face to south.
  • Green trees are available a long with the architectural beauty .
  • Most of the apartment contains 5 becomes.
  • Mosque is available adjacent to the apartment.
  • Long term installment facility.
  • Apartment hand over within three years
  • Loans facility of DBH and National Housing.

Toma Group holds the pride of being one of the largest and most prestigious specialty company  for Construction as Contractor at Bangladesh Railway for their various projects including Railway Tracks, Railway Station & Building Infrastructures, Bridges and Culverts Stations, Go-downs, Junctions etc. Accordingly, we have specialized teams of Railway related Engineers, Heavy duty Machineries and Logistic Equipment to cater any services regarding the issue. So far,  we have successfully undertaken and constructed number of projects relating to Railway all over the country with dignity, accuracy and commitments and proved ourselves worthy to undertake any in future challenges for this sector.

Table: 3.2 railway project.

Ongoing Projects of Railway Project (Short Listed):

Our On-going projects are even more exciting, complicated and prestigious than before opening up more avenues of experiences and possibilities. All these projects are continuing in full swing according to schedule with their respective manners of Contracts.

Table: 3.3 railway ongoing project .

Our On-going of Great Maghbagar Flyover projects are even more exciting, complicated and prestigious than before opening up more avenues of experiences and possibilities. All these projects are continuing in full swing according to schedule with their respective manners of Contracts.

Gallery of Great Maghbagar Flyover Project

This is a specialized factory for production and supply of Pre-stressed Concrete Sleepers & Turnouts at our Railway projects. The Plant comprises of manufacturing prestressed concrete sleeper and turnouts for Railway. The location of the factory is at Durmut, Jamalpur district, on the northern belt of the country with more than 5.50 acres of land utilized for different installations including Factory sheds to support – Plants, Godowns, Batching plant, Casting plateforms, Steam Curing chamber, Equipment house, Laboratory, Water curing chamber etc. with more semi sheds for – Stone crusher plant, Sand & Stone stacking yards.

DG/BG/MG turnouts, switch expansion joint & static switches are manufactured in our plant which are also used in Bangladesh Railway. Present annual productions are as under.

DG Prestressed concrete sleeper           :               1,00,000 nos/year

BG Prestressed concrete sleeper           :               40,000 nos/year

MG Prestressed concrete sleeper         :               2,50,000 nos/year

Turnouts DG                                          :               26 Sets/year

Turnouts BG                                          :               60 Sets/year

Turnouts MG                                         :               80 Sets/year

Our On-going of Dhaka and chittagang  4 lan  projects are even more exciting, complicated and prestigious than before opening up more avenues of experiences and possibilities. All these projects are continuing in full swing according to schedule with their respective manners of Contracts.

The company We have a state of the art Ready Mix Concrete Plant at Dhaka with modern amenities to meet high grade concrete requirements for any under construction sites. With 4 (four) Mixture Trucks each having a capacity of 5 cubic meter of concrete is always ready to deliver concretes at any corner at any given time. The plant it-self has a capacity of 110 cubic meter of concrete in 8 hours of shift per day which can be applied with a 100 meter vertical concrete lifting pump.

Financing Strategy: Details of expenses are given in the paragraphs above and annexure for which we will require startup capital or financing. Financing will be needed for buying Raw materials, supplies, computer, equipment & fixtures, tools, travel expenses, salary/wages etc. These expenses are included in our mon TPL cash flow projection to indicate the ongoing requirement of cash. Our sources of finance will basically be the money of Directors, Bank and the Down payments of the buyers.

MS road fabrication 60 grad ROD work for 100kg

Sl No

Name of Item



Rate in Tk.

Amount in Tk.


M.S. Rod (60 grade)






GI Wire






Labour For Rod Binding






Local carriage, T & P etc.




Sub Total=



Contractor’s Profit




Overhead Expenses











Grand Total=


Table: 3.5 MS road fabrication 60 grad ROD work for 100kg                                                so, rate per sft 88.64

For 100 sft work Plastic work


Name of Item



Rate in Tk.

Amount in Tk.

01Sand (F.M 1.2) with screening




















Sub Total=



Contractor’s Profit




Overhead Expenses











Grand Total=


Table: 3.6 Paint work.                                                               So , rate  per sft 23.13


Name of Item



Rate in Tk.

Amount in Tk.






02Picket breaking





03Bricks Chips Screening





04Local Sand (F M 1.2) With Screeening





05Sylhet Sand (F M 2.5)With Screening










07Labour for casting





08Labour for 28 Days Curing @1/4 Per Days





09Local Carries,Sundries






Sub Total=



Contractor’s Profit




Overhead Expenses










Grand Total=


Table 3.7: RCC work                                                              So, rate per sft 23.13

Paid land Owner


Media fee




over haed of site


Financial cost


Total cost


Table: 3.8 Cost analysis of a project

Cost analysis of a Project (Haque villa)

The required documents for availing Housing Loan are given bellow. To know details about loan one can get information from Head Office  Loan Department and Zonal and Regional Office, if needed. It is earnest request to valued borrower to inquire details about instalments, rate of interest, ways of repayment system, and ways of disbursement etc. before availing loans as ours is a trifle dissimilar from others.

 Kinds of Credits: 

There are seven kinds of Housing Loans are being disbursed.

  • General Loan : It will be availed by single person or spouse.
  • Group Loan : Flat wise loan for a single plot of Multi owner will be availed.
  • Flat/ Apartment Loan : Flat/ apartment loan  are half completed/ under constructed will be availed.
  • Extension Loan : This kind of loan will be disbursed to complete extensive part of a constructed building under approved design.
  • Loan for Middle and Lower-Middle income group of people : The sort of loan  is provided to build  flat of 550 to 1000 square feet.
  • Semi-Pacca Loan : Except Metropolitan Areas and DistrictTowns, this kind of loan is provided to build semi-pacca houses in Upazila and Growth Centre/ Commercial area
  • Short tern Special Loan: This kind of loan is provided to build the ending or incomplete part of constructions.

 Loan Disbursed Areas:

At present the corporation is providing loans to all MetropolitanCities, DistrictTowns, Upazilas and other GrowthCenters/ Commercial areas of the country. Very recently the corporation has extended loan activities to the suburb of many Upazilas

The ceiling of loan is determined according to the value of plot, location, surrounding, and standard of construction and estimated rents of the house.

SL. No.Name of the AreaHighest Ceiling (Tk. In Lakh)Construction Rate in per sqft (in Tk)Investment of Borrower (minimum)
1.Dhaka & Chittagong Metropolitan area50.00Ground floor of R/A- 2150, Garrage- 1660, Top floor-1350.20%
2.Divisional Town of Khulna, Barisal, Rajshahi, Sylhet & Rangpur45.00Ground floor of R/A- 2048, Garrage- 1580, Top floor-1230.20%
3.City corporation area of Comilla, Narayanganj,Gazipur, Mymensing, District town of Moulvibazar & Municipal area of Tongi & Savar.40.00Ground floor of R/A- 2048, Garrage- 1580, Top floor-1230.20%
4.Other ancient district town, Cantonment board of Savar & other Corporation’s area of Regional Offices.35.00Ground floor of R/A- 2048, Garrage- 1580, Top floor-1230.20%
5.New DistrictTown30.00Ground floor of R/A- 2048, Garrage- 1580, Top floor-1230.20%
6.All Upazilla town & Municipal area.25.00Ground floor of R/A- 2048, Garrage- 1580, Top floor-1230.20%



Table: 3.9 Housing Loan.

 Repayment Period of Loan & Interest Rate:

Along with IDCP, interest, capital the installment is calculated for 15  years (for general loan) or 180 installments and 240 installments within 20 years for the scheme of middle and lower middle income group while 60 instilments within 5 years for short term special loan. The rate of interest is 12% for Dhaka & Chittagong Metropolitan area and 10% for other area.

Monthly Installment for Taka 1 lac
 Loan Period Rate of
15 Year10%555.56418.98974.54
15 Year12%555.56502.781058.34
20 Year12%416.67502.08918.75
20 Year10%416.67418.40835.75
05 Year12%1666.67508.332175.00


Table: 3.10 Installments

In case of Non government and private plot the required documents will be provided with the formal application given below.

Statistics of Loan:

After the establishment of Corporation in the financial year of 2011-12 the total sanctioned loan amount is 4694.74 crore and the total disbursed amount is 4103.53 crore.  Up to December, 12 the Corporation has disbursed loan to 73038 borrowers and the sanctioned loan is 4312.40 core. The number of constructed housing units is 182102. The total balance is 2678.65 crore taka.

(Taka in crore).

Financial Year



Table: 3.11 Statistics of housing loan.


  • Brand Image
  • Modern Technology
  • Quick Handover
  • Own Construction Products


  • After Sales Service
  • No assistance in getting loans
  • Lack of motivation of workers


  • Pay more attention on research and development advertisement
  • Competitive advantages
  • Brand name recognition
  • Rapid growing ability
  • Relationship management


  • Land Acquiring
  • Political Instability
  • Competitive price skimming
  • Customer awareness of pricing and service
  • Growth of competitors
  • Some unscrupulous real estate developer companies
  • Amin Mohammad Foundation Ltd.
  • Asset Development & Holdings Ltd.
  • The Structural Engineers Ltd.
  • East West Property Development (pvt.) ltd.
  • Concord Condominium Ltd.
  • Building Technology & Ideas Ltd.
  • Eastern housing ltd
  • Rangs Properties Ltd.
  • Navana Real Estate Ltd.
  • Oriental Real Estate LTD.
  • Sheltec Ltd.
  • Suvastu Development Ltd.
  • Rupayan.
  • ABC REAL estate ltd.
  • Mega builders ltd.

In the real estate industry there are currently more than 800 firms including both commercial and residential developers. Thus it is quite though for one firm to sustain the top position. Competition among apartment business is not so fierce since apartments in suitable locations never go unsold. Here competition is stronger in acquiring desired land than customers. However, all the companies we are working with deal with apartments and the total size of the market for apartments is around 6000-7000 units per year.

Marketing process consists of four distinct ways that circulates one after another. Through these activities the company watches & adapts to the actors & forces in the marketing environment. We will look briefly at each of the elements & analyze firms’ standings taking each of the steps as a basis of evaluation. At a glance the means are-

  1. Analyzing the marketing opportunities
  2. Selecting target markets
  3. Developing marketing mix
  4. Managing marketing effort

This is a center of a cross road where firms need to go for success, which will be the market segment they will serve. A market segment consists of consumers who respond ion similar way to a given set if marketing effort. There are some bases of segmentation and farms credit is in finding up the most effective way of segmentation. For real estate in Bangladesh income based segmentation is the mostly practiced whereas – area or geographic based, type-e of family based segmentation are also meaningful. However most the companies proceed with following steps-

  • Market segmentation
  • Target marketing
  • Market positioning

In real estate business all the companies offer almost the same product –

                                             a) Land

                                             b) Apartment.

Some companies sell only one and some companies sell the both. In all the cases, service is the same; Accommodation. The variety of the product does not offer any distinction among the companies.  The distinction arises here from the following characteristics of land and apartment-

                                                 a) Variety

                                                 b) Quality

                                                 c) Design

                                                 d) Features

                                                 e) Brand name.

These features found within an apartment complex can be –

           a) Shopping centers

                                               b) Community centers

                                               c) Mosques

                                               d) Sports zones

                                               e) Dry cleaners etc.

In case of buying lands , the main distinction drawn by customers is as to quality which is actually goodwill of the companies. The features mentioned above can also be important in this aspect.

The main aim of a promotion is to obtain retain customers which involves informing, influencing and persuading customers. There was a time in business where there was no need for any advertising of any sort. But in today’s world no business can exist, much less prosper. Without advertising of some way to reach customers before and more effectively than competitors do. RES industries consequently have a strong advertising program. The marketing activities that they have already taken are-

  •         Print Media
  •         Electronic Media
  •         Site Billboards
  •         References
  •         Direct mail
  •         Fair
  •         Personal selling

When a company reaching the target segment as well as the degree of coverage is the main concern, daily newspaper is the best option. About 100% of these target customers read the newspaper every day. Someone thinking of buying a flat will keep his/her eyes open for advertisement of apartments when reading the paper every morning. About prominent Real estate companies place individual Ads every week method of promotion is arguably the most effective one.Electronic media basically, TV channels are one of the important parts of our present life. RE companies provide different lucrative and emotional Ads on electronic media. That’s impact also positive. People are also enthusiastic on telecommunication media. They call RE companies directly in paper. So, the most impacts for sales increasing are electronic media and newspaper.

Building and maintaining profitable customer relationship is essential in business for dealing it successfully. In modern business, it is more than essential. A fully satisfied customer is willing to pay more for the product with which he or she is satisfied. To satisfy the customer, the companies have to value the customer’s needs and wants and make products from which they can get their perceived value.

Contribution of Real Estate in Bangladesh Economy

Over the last 15 years the Real Estate development sector has made significant contribution to many sectors of our economy.

 GDP at real estate and Renting and other business Activities.





Million taka




 Table: 4.1 GDP at real estate and Renting and other business Activities.

 Growth rate of construction sector.











 Table: 4.2. Growth rate of construction sector.

 GDP Contribution Trend Analysis: The sector wise share of Real Estate, Renting and Business Service sector to the national

 Table 4.3 :GDP Contribution Trend Analysis

 Contribution in the Government Exchequer Including Advance Income Tax, Vat and Registration Fees.

The Real Estate sector contributes to the Government exchequer through Registration Fees, VAT, Advance Income Tax (AIT), Stamp Duty, Property Handover Tax etc. The following table shows the contribution to the government regarding flat and apartment purchase in Dhaka.

Table 4.4: Contribution to the govt. from 2006 to 2011 in Dhaka

 According to the new rules, along with a gain tax of 2% (which was 5% till 2007) and stamp duty of 3% a customer is required to pay registration fees to the government, city-corporation and sub-registry office in the rates of 2% (which was 2.5% till 2009), 2% and .05% respectively bringing registration expenses down to a total of 9.5%. A customer also needs to pay an AIT of maximum Tk. 2000 for each Sq. meter of floor space and a VAT of 1.5% pulling cost of acquiring an apartment substantially up.

 Direct Employment:

Real Estate generates huge employment opportunity. It may be direct or indirect In Bangladesh around 2, 50,000 employment generated by this sector.

  • Architects: 2000
  •  Graduate Engineer: 10000
  •  Diploma Engineer: 24000
  •  Management Official: 20000
  •  Direct Labor Skilled & unskilled: 2 million (20 Lac).

 Table 4.5 : Labour Force scenario

The construction industry is a labor-intensive industry, whose capacity of absorbing labor is great. The industry provides many jobs for skilled, semi-skilled and unskilled workers both in the formal and informal sectors. For the migrants from the rural areas the construction industry is often a stepping stone to urban life. Real Estate sector is a major part of the construction sector. Most of the labour force engaged in the construction sector is basically engaged in the Real Estate sector. The following table shows the labour force engagement to the construction sector from 1999 to 2010.

 Bank Loan Scenario

The following table shows total amount of loan disbursed on the Real Estate sector from the Banking sector of Bangladesh during the period from June 2006 to June 2011.

Major reasons for preferring any particular area are:

      More planned area (Uttara, Bashundhara, Dhanmondi, Gulshan)

      Ease of communication with office, school, college etc

      Personal choice

      Residing at that area for a long time and have relatives in that area

      Less expensive (Mirpur, Mohammadpur, Uttara)

Usage of Undocumented Money

Undocumented economic activity holds a large portion of the national economy of Bangladesh. Undeclared income could account for up to 80% gross domestic product – some US$110 billion, Agence France-Presse reported this month, citing a new Finance Ministry study (Chowdhury, 2011). Black or undocumented money is kept in different forms and shapes. Black money is kept deposited in local or foreign banks, Real Estate sector, invested in the purchase of shares and stocks, purchase of different saving instruments, sometimes transferred through unofficial channels and is invested outside the country, and also kept in the form of cash, gold, jewelry etc (Waresi, 2010). In Real Estate sector, black money is utilized in acquiring land, apartments, buildings, shops etc. These are often acquired in the names of relatives, friends or trusted men of the black money holder (Waresi, 2010). But the usage of undocumented money in the Real Estate sector cannot be measured precisely because no authentic information is available anywhere.

Reasons behind Increasing Apartment And land Price in Bangladesh

Reasons of Apartment Price Hike

The price hike of apartments is a major and debatable issue in the Real Estate sector of Bangladesh. The Real Estate developer companies are criticized of charging a lot of money for an apartment. But from the above discussion, it is obvious that, in recent years, apartment price increased due to the unimaginable increase in land price as well as sharp increase in prices of the construction materials. The following figure shows the combined effect of price hike of land and construction materials on apartment price. The percentage increase in prices is calculated using 1990 as the base year.

So, from the above discussion, it is clear that, price hike of apartments was obvious in the last few years. The Real Estate Developers were bound to increase their price to cover the cost of a project.

First reason Land Price  increasing in Dhaka city

 Table 5.1: Price of Land (Taka/ Katha) from 1990 to 2010

In the first decade of 21st century, the price of per katha land increased unbelievably almost all over the Dhaka city. Compared to the price increase of the earlier decade, the percentage increase in price almost doubled, and in some areas it is three times to ten times the earlier price.

Land price whole countries

Land price compare within the country by Katha

Land Area        Taka
Agriculture land        50,000.00
Union (bazar)      250,000.00
Thana (bazar)      600,000.00
District(shodor)    1,000,000.00

On carefully analyzing the land value trend of Dhaka City and the suburbs for the last thirty years, a number of causes of high land value have been identified as follows:

  •       Lack of investment opportunity in other sectors of economy.
  •       Rapid urbanization and consequent scarcity of urban land.
  •       Uncontrolled land market.
  •       Lack of comprehensive land policy.
  •       Inappropriate taxation policy.
  •       Political instability.
  •       High rate of inflation.
  •       Land speculation and the role-played by brokers.
  •       Land ownership being regarded as a symbol of social prestige.
  •       Land purchase by real estate developers.


To analyze the apartment price hike scenario, the price hike trends of some major construction materials are analyzed. They are,

  • Bricks
  • Fine sand
  • Granular sand
  • 60 grade Rod
  • Cement

A lot other construction materials are required to develop a Real Estate project, but only the above five are analyzed due to the availability of historical data. Data regarding other construction materials are not available.

Price Hike Trend of Bricks   and Price Hike Trend of Fine Sand

The following figure shows the price hike trend of  brick and fine sand from 1990 to 20112.

  • After 2005, price of bricks had a rapid, almost exponential, increase.
  • After 2004, price of fine sand had a rapid increase. Then at 2008, the price fall down a little, but then again at 2010 there is a sharp rise in per cubic feet price.

 Price Hike Trend of 60 Grade Rods

After 2002, price of 60 grade rod had a rapid increase. Then at 2008, the price fall down a little, but then again at 2010 there is a sharp rise in per ton price of rod.

Price Hike Trend Cement

After 2002, price of per bag cement had a rapid increase. Then at 2008, the price fall down a little, but then again at 2010 there is a sharp rise in per bag cement price.

Price of construction materials from 1988-2013

Price of construction materials from 1988-2013


Price of Brick  per piece (Tk)

Price of Sand, per sq. ft. (tk)

Price of Cement per bag(tk)

Rod, per ton (Tk)






































































Interest Rate is Very high of the Bangladesh

Interest rate of housing among the countries

 Country nameInterest rate Bangladesh12%-16% India8%-10% Pakistan9%-10% China4.14%-5.76% Japan2.37%-3.05% Malaysia6%-6.60% USA4.86%-6.00% UK5.25%-7.39% Australia7.34%-8.22% France3%-5% NewZeeland7.25%-9.25%         Source: Copyright (R) 2012

Table: 5.3. Interest rate of housing

Fourth Reason Increasing urbanization in Bangladesh

Statistics & studies show that in 2000-2015, urban growth rate is expected to be at an average of 3.7 for Bangladesh. India, one of the most attractive markets of global real estate, is expecting 4.9% growth of urbanization. Moreover which India is estimated to have 36% people living in urban areas by 2015, Bangladesh is expected to have 34%. The scenario is further evident by the per square kilometer population density growth in Graph-4.


The apartment price mainly depends on two parameters:

  • Price of the land, and
  • Construction cost of the apartment

Increase in land price and price of the construction materials automatically results in increase of apartment price. In this section, the price hike scenario will be analyzed. The following table shows the price of per square feet apartments in the major areas of Dhaka city from 1990 to 2010.

Table 5.4 : Average Price of Apartments (Taka/ Sq. Feet) from 1990 to 2010

In the first decade of 21st century, the percentage increase in per square feet price of apartments is very high, particularly in Baridhara, Dhanmondi, Gulshan, Banani, and Shamoli area. Compared to the price increase of the earlier decade, price rise is almost exponential in this decade.

Apartment price per square feet in Dhaka city 2013

1) Gulshan


2) Banani


3) Dhanmondi


4) Mirpur


5) Shantinagar


6) Kalabagan


7) Moghbzar


8) Rampura


19)Moakhali D.O.H.S


10) Uttara Old


Sources: Mukta Akash

Table: 5.5 Apartment price in Dhaka

Apartment price per square feet in Chittagong 2013

Khulshi (north)


Khulshi (south)


R. Nijam raod






Boddar hut


Agrabad bazar


Jamal khan


New market


Mala para


 Lal khan bazar


Sources : Mukta Akash

Comparison of Real Estate within South Asian Countries

From the overall comparison I can say that India has a great position not only in the South Asian countries but also over the world. At present flat price in India is highest within South Asian Countries. But within South Asian countries at present, real estate sector of Bangladesh is a one of the leading growth sector and is providing remarkable contributions to the GDP in Bangladesh and creating employment opportunities for the unemployed people of Bangladesh.

 Present Scenario of Real Estate

Currently, about 5 per cent of India’s GDP is contributed by the housing sector. The GDP share of the real estate sector (including ownership of dwellings) along with business services was 10.6 per cent in 2010-11. After growing at 10.4 per cent in 2008-09, the rate of growth of this sector has decelerated to 7.8 per cent in 2009-10 and further to 6.9 per cent in 2010-11. Estimates show that for every rupee that is invested in housing and construction, 0.78 paisa gets added to GDP. Housing ranks fourth in terms of the multiplier effect on the economy and third amongst 14 major industries in terms of total linkage effect according to Economic Survey 2011-12.

           GDP share of the real estate sector








 Table: 6.2 GDP share of the real estate sector in India

Demand for real estate is expected to grow at a compound annual growth rate (CAGR) of 19 per cent between 2010 and 2014 Tier 1 metropolitan cities are projected to account for about 40 per cent of this. Growing requirements of space from sectors such as education, healthcare and tourism provide opportunities in the real estate sector. With institutional credit for housing investment growing at a CAGR of about 18 to 20 per cent per annum in the next three-five years, the housing sector’s contribution to GDP is likely to increase to 6 per cent. While India is among the top countries in terms of housing and work space needs, it ranks 181st in construction permission processes according to the World Bank’s Doing Business 2012 report

Real Estate Market Size

Activities in the real estate sector may broadly be classified into residential, commercial and the retail segment and hotels. The size in terms of total economic value of real estate development activity of the Indian real estate market is currently US$40-45bn (5-6% of GDP) of which residential forms the major chunk with 90-95% of the market, commercial segment is distant second with 4-5% of the market and organized retail with 1% of the market. Over next 5 years, Indian real estate market is expected to grow at a CAGR of 20%, driven by 18-19% growth in residential real estate, 55-60% in retail real estate, and 20-22% in commercial real estate.

Real Estate Market Size in India

US billion50.153.355.666.8

Table: 6.3 Real Estate Market Size in India

Residential real estate industry has witnessed stupendous growth in the past few years owing to the following reasons:

  •       Continuous growth in population.
  •       Migration towards urban areas.
  •       Sample job opportunities in service sectors.
  •       Growing income levels.
  •       Rise in nuclear families.
  •       Easy availability of finance.

Housing demand in Srilanka is increasing day by day, and their real estate is booming comparatively well than other countries. Thoughthe apartment and land price in Srilanka is lower than Bangladesh. Though the housing industry in Bangladesh, especially in Dhaka, has made remarkable progress in the last ten years. With apartment-sale charts consistently displaying positive curves.

 Levels of interest in this sector are certainly high. According RIU sources, around one quarter of apartments in two new high-rise projects scheduled for construction by one of Sri Lanka’s main condominium developers have been reserved even before construction has started. Out of the 226 apartments built in the first phase, only ten remained to be sold.

The average sale price of houses in Sri Lanka was LKR 17.63 million (US$ 133,831), according to Lanka Property Web, one of the country’s leading property portals.

       The average price of apartments was LKR 25.36 million (US$ 192,511).

       The average price of land was US$213 per sq. m. or LKR 710,000 (US$ 5,390) per perch in July 2012 (1 perch = 25.29 sq. m.).

          Sources: Lanka Property Web

The story of land prices in the suburbs has been one of almost continual appreciation over the past two decades according to available data. The factors exerting upward pressure on prices include rising demand for housing, currently estimated at around 90,000 units per annum, increases in per capita GDP, increases in migrant worker remittances and the financial health of local corporations. Fluctuations in interest rates have direct short-term impacts where the relationship is traditionally a negative correlation.

At present, real estate in Bangladesh has better position than Pakistan. Because

In Bangladesh three decades back the city dwellers were reluctant to live in flats while ten years back someone would have thought twice before buying an apartment/flat. But in the last couple of years people have shown an increased interest in owning apartments. As mentioned earlier the main reason is economic due to increased land cost as well as construction cost. As a result of increased demand, many apartment builders have appeared in the market in recent years. Twenty years ago there were fewer than five companies in Bangladesh engaged in developing apartments while today there are more than 1000 developers.

 Karachi Residential Apartments Market

A major percentage of the residential dwellings in Karachi city comprise apartments. Anecdotal evidence suggests that 40% of the total residential dwellings are apartments.  Arcadian with 2,000 and Lucky One with 600 apartments are two major upcoming projects in the city.

Lahore Residential Apartments Market

Lahore has a very limited supply of apartments. There are approximately 20 mixed-use developments across Lahore offering 2 or more floors of apartment units. However, most of these apartments have been converted into offices and are currently being used for commercial activity. Due to the usage of apartments as offices, pricing and rents vary considerably.

Our survey estimates 14 new projects were planned to be injected into the existing supply of apartments by 2013. However, only 4 of these are currently under construction but their construction pace is very slow.

Islamabad Residential (Apartments) Market

According to our estimates, apartments constitute 10% of the total residential developments in Islamabad.  Studio apartments and 2 bedroom apartments are the highest in demand and the prices tend to vary depending on the quality and location of the development. Currently, Colliers estimate average occupancy of over 90% in Islamabad’s apartment sector.


Apartment developments located in diplomatic enclave tend to have higher rentals ranging from PKR 80,000 – 100,000 per month whereas, the ones located in other parts of Islamabad range between PKR 35,000 – 40,000 per month. The capital values range from PKR 6,000 – 13,000 per sqft depending on the quality of the development.

Compare the Economic Contribution among the Bangladesh, India Pakistan and Sri lanka.



Employment (million)

Interest of housing



2.5 million

12-16 %



7.2 million

8-10 %



3.5 million

9-10 %

Sri Lanka


3.0 million

13-15 %

Table : Compare the Economic Contribution among the Bangladesh, India Pakistan and Sri Lanka.

 Asia Pacific Real Estate Health Monitor.


Findings, Recommendation

And Conclusion

a) Lac of general guidelines of building designs to prepare appropriate planning rules, building code based on the character of the area. It should also cover building regulations and related detailing of the building and also cover selection of materials.

b) It has been observed that the construction material and equipment differ from place to place, considering this fact, specialized standards and code should be made.

c) Lac of innovative technologies in the sector for high productivity.

d) Lac of proper research support and financial support in public and private sectors.

e) Environmental impacts and other information are not available to the public.

f) Selection of building materials, the consultants and experienced contractors are in adequate.

g) Less encouragement of local based building materials as well as cheaper alternative/substitutes.

h) No separate financial policies for consultants/contractors.

i) Lac of management effectiveness in the construction sector.

j) No extensive and multifold regulation.

k) Lac of establishment the regulations and control procedures of the government.

Considering all issues, following broad general recommendations both in the public and private sector should be taken into consideration:

a) Appropriate planning and programming for the construction project would be framed based on the nature of works.

b) The authority with help of professionals should formulate general guidelines of building designs. Special attention would be given to prepare appropriate planning rules, building codes etc. based on the character of the area.

c) It has been observed that the construction material and equipment differ from place to place, considering this fact, specialized standards and code should be made.

d) Simple and innovative technologies should be introduced in the construction sector for high productivity. The attention should be given on its acceptability to the sectors. Affordability to the government as well public enterprises should be taken into consideration.

e) Research and innovation for development should be encouraged. Proper research support and financial support should be provided both in public and private sectors. Even groups of entrepreneurs and individuals should be encouraged by the policies.

f) Research outputs, available materials, energy consumption cost, environmental impacts and other information should be made available to the public through institutions and mass media.

g) Local based building materials as well as cheaper alternative/substitutes should be encouraged.

h) Special financial policies for consultants/contractors financing should be introduced. It would be included: i) reduction of bureaucracy ii) generous advance payments, iii) risk guaranties etc.

i) Overall management capabilities is essential for the construction sector. It should be managed through institutional basis, and the construction actors have contractors, laborers, managers and other related actors as active participants.

Today Bangladesh stands on the juncture of economic emancipation. The stage is set for rapid growth and development in every sector of the economy. The real estate sector is also experiencing significant changes. ‘Professionalism’ is the key word for success now a days and in the years to come. Only those companies which have a total commitment to this sector will thrive. TPL is determined to play a leading role in the development of the real estate sector in the twenty –first century. TPL has worked towards building a strong foundation and establishing a professional corporate identity for the company. Today, in the field of real estate development, though TPL is new, but in future, it will be a recognized leader which will be respected for its achievements, professional ethics and innovative concepts. TPL’s corporate philosophy is however based on a very simple principle – “A friend in need The Bangladesh real estate sector has traditionally been an unstructured sector but it is slowly evolving into a more organized and regulated industry.

Bangladesh has huge potential to attract large foreign investments into real estate sector. With real estate reaching a point of saturation in developed countries and the demand and prices falling, global real estate players are looking at emerging economies such as Bangladesh for tapping new opportunities in the real estate sector.

Moreover, there is a high level of global uncertainty looming over the developed and developing nations of the world. While developed economies are still struggling to regain their growth momentum, developing countries including Bangladesh, India and China are expected to grow at a reasonably high rate. Investments in Bangladesh real estate will fetch higher returns for investors compared to other global developing markets. In the coming years, the opportunities in the real estate sector will possibly attract global players to Bangladesh and hence will help the industry to mature, become more transparent,

Future prospect of the business: The growth of urbanisation is being observed sharply (approximate 3.7 per cent per annum) in Bangladesh in the last one decade owing to the growth of economic opportunity, upgrading of living standard, as well as enjoying modern facilities in the day-to-day life. Similarly, an ever increasing younger population would be the major driver of huge demand for housing in the near future.


1)  Visited Web Site

                       Source:  India real estate overview.


                        Copy right ®the Daily star .net



                  www. Imelec. Com


www. Muktaakash


2) Visited offices

Toma properties Ltd (TomaTower  7th floor And 6th floor ),77/1                                       karail , ramna, Dhaka -1000.

3) Brochure & information

 (Financial statement of Toma properties Ltd)


Pakistan Real Estate Market Year in Review 2012 – Outlook 2013

Crisil Research: India Real Estate Overview; March 2012

 India Real Estate Overview

Sri Lanka Real Estate Market Brief Volume 1: January 2012

In association with Research Intelligence Unit


Source: Copyright (R) 2012

Sources :Real estate Housing and Association of Bangladesh

  Source:  India real estate overview.

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